The Central Bank of Nigeria (CBN) has once again increased the benchmark interest rate, raising it by 25 basis points from 27.25% to 27.50%.
This decision was announced by CBN Governor Olayemi Cardoso following the conclusion of the 298th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, November 26.
Governor Cardoso explained that the move is part of the CBN's strategy to address the persistent rise in food and headline inflation rates affecting the Nigerian economy.
"The Monetary Policy Committee voted to raise the Monetary Policy Rate (MPR) by 25 basis points," he stated, emphasizing the need for aggressive measures to curb inflationary pressures.
In addition to the interest rate hike, the MPC decided to maintain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
The Liquidity Ratio remains unchanged at 30%, with the Asymmetric Corridor set at +500/-100 basis points around the MPR.
The CBN also reported an increase in Nigeria's foreign reserves, which rose to $40.88 billion as of Thursday, November 21, up from $40.06 billion at the end of October.
These financial adjustments reflect the CBN's ongoing efforts to stabilize the economy and strengthen its financial position amid challenging economic conditions.
留言